BC4 IFRS 11 sets out requirements for the recognition and measurement of an entity's interest in joint arrangements. The requirements for the disclosure of an entity's interest in joint arrangements have been included in IFRS 12 Disclosure of Interests in Other Entities (see paragraphs BC52–BC55). IFRS 11 is concerned principally with addressing two aspects of IAS 31 that the Board regarded as impediments to high quality reporting of joint arrangements: first, that the structure of the arrangement was the only determinant of the accounting, and second, that an entity had a choice of accounting treatment for interests in jointly controlled entities.

BC5 The Board did not reconsider all the requirements in IAS 31. For example, the Board did not reconsider the equity method. Accordingly, this Basis for Conclusions does not discuss requirements of IAS 31 that the Board did not reconsider.

BC6 The Board published its proposals in an exposure draft, ED 9 Joint Arrangements, in September 2007 with a comment deadline of 11 January 2008. The Board received over 110 comment letters on the exposure draft.